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On April 9, 2025, US President Donald Trump announced a 90 -day suspension of customs tariffs for most countries. He hides much more complicated and ignored challenges behind this obvious reverse. But what really motivated this price?
The real reason for the break of Donald Trump’s price
In a number of confidential discussions, the US President said he was fully aware of the possible consequences of his price policy, including the risk of violations of the economy in the recession. According to sources of close ensembles, however, it was not the recession that feared most, but economic depression. The President did not want to repeat the mistakes of the past, especially those that led to a large depression of 30 years, which recorded the unemployment rate of 25 %.
This context largely explains Donald Trump’s decision to return to certain prices stored within his trade war. Although he considered the muscle approach, the deterioration of financial tension, symbolized by a decline in shares and the increase in bond yields, he pushed him to respond quickly. Inflation of fear of bond markets played a particular role in this political inversion.
Shadow hero?
In addition, this decision also contributed to the rise of Scott Bessnt, Secretary of the Ministry of Finance in the development of business strategy and negotiations with business partners. With the consent of most business partners for “favorable” agreements (75 countries) Donald Trump assessed that it is necessary to accept a more measured approach to the protection of the economy.
In response to the general suspension of prices, the financial markets responded positively. Bitcoin shares rose, S&P 500 jumped by 9.5 %, Dow Jones rose by 7.9 %and Nasdaq climbed by 12 %. However, climbing prices for Chinese imports of 125 %, however, maintained high tension in trade due to the importance of trade between the two countries.
Therefore, the real reason for this 90 -day price break lies in the desire to protect the US economy from a deeper crisis. Donald Trump decided to prefer a negotiating strategy with several countries, including Japan, while maintaining the goal of defending American interests.
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The world is evolving and adaptation is the best weapon that survives in this undulating universe. I am interested in everything about blockchain and its derivatives. To share my experience and promote an area that fascinates me, nothing better than writing informative and relaxed articles simultaneously.
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The words and opinions expressed in this article are involved only by their author and should not be considered investment counseling. Do your own research before any investment decision.